weite out the journal entries for each transaction
Date Description 2019 Began business. Owners deposit $10,000 in exchange for 1-Jan 1,000 shares of $10.00 par value common stock. Borrowed $25,000 from the bank. Signed a 2 year note with interest at 4.5%. Interest is payable June 30 and 10-Jan December 31 of each year. Signed a lease agreement to rent office space for $975 per month, beginning Feb 14 Nothing was paid today. 12-Jan (Question: do we owe rent for January?) Purchased computer equipment for the office. Cost is $22,000. The equipment will be depreciated straight line over 5 years using a month for the month of purchase. Wrote check for payment. Depreciation for Jan to March will be $1,062.50. (Record depreciation in the adjusting 15-Jan entries.) Hired an outside technician to set up the equipment. Received a bill for $3,500, which is due on Feb 22. (accounts payable) (Capitalize if it is part of the asset cost 22-Jan Research this.) Received the following bills due March 15: telephone $275, 15-Feb and rent for $975. 20-Feb Paid the technician's bill from Jan 22. Purchased computers as inventory to sell to customers. 01-Mar Purchased 50 computers at a cost of $800 each. Invoice is payable in 30 days. Shipping costs are included in the price. Sold 10 computers to George's Woolens, Inc. at a price of $900 each. Also performed installation services. Sent client 12-Mar an invoice for $13,800. (The invoice total includes the computer sales and the installation services - there are two separate G/L income accounts. Also, perpetual inventory.) 15-Mar Paid bills received Feb 15. Received the following bills due April 15: telephone $345 15-Mar and office supplies $760. Completed a consulting project for Able Therapies, Inc. 17-Mar Sent client an invoice for $2.400. Received a check for $5,000 from JAR Manufacturing as a 20-Mar deposit for an installation to be done in April. Received payment for 50% of the invoice from George's 22-Mar Woolens. 22-Mar Paid three months of rent. Check amount is $2,925. Completed a service project for Martha's Knitting Works. Sent client an invoice for $4,500. Used an outside consultant for this project, who will send an invoice to us for 31-Mar payment. Received an invoice from an outside technician that we used for the George's Woolens screening done earlier. The 17-Mar invoice from this vendor was $1,800. Paid outside technician $875 for work on the Able 17-Mar Therapies job that was completed earlier. Have not yet received bills, but we know that the outside 31-Mar technician fees for Martha's will be $2,400. Received a letter from George's Woolens. They are having financial problems and are planning to file for protection under the bankruptcy laws. They are not likely to make any 28-Apr further payments
